Tomei 4Q net profit up four times on lower expenses

Tomei 4Q net profit up four times on lower expenses
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KUALA LUMPUR (Feb 8): Tomei Consolidated Bhd’s net profit jumped by more than four-folds to RM11.67 million in the fourth quarter ended Dec 31, 2020, from RM2.68 million a year ago, thanks to lower expenses.

Earnings per share rose to 8.42 sen from 1.93 sen, according to the jeweller’s filling with Bursa Malaysia.

Quarterly revenue increased 23% to RM167.84 million, from RM136.51 million previously, on higher sales volume and selling price.

Tomei said selling and distribution expenses for the quarter were down 26% to RM17.14 million from RM23.15 million, while finance cost fell 31% to RM2.09 million from RM3.01 million.

For the full year ended Dec 31, 2020, Tomei saw its net profit surge 257% to RM31.17 million, from RM8.74 million in the previous year, while revenue rose slightly by 3.4% to RM552.4 million from RM534.07 million.

On prospects, Tomei warned about the negative impact from its bricks and mortar outlets, due to the reimposition of movement control order from Jan 13, 2021.

“In the light of the current scenario, the group has introduced various measures to soften the impact arising from this unprecedented event by employing alternative sales platforms such as e-commerce and social media to capture sales lost from its bricks and mortar outlets,” said the group.

Shares of Tomei closed unchanged at 84.5 sen today, valuing the  group at RM117.12 million. Over the past year, the counter gained 72% from 49 sen.

S Kanagaraju